76R14190 AJA-D
By Reyna of Bexar, Van de Putte, Siebert, H.B. No. 3135
McClendon
Substitute the following for H.B. No. 3135:
By Wolens C.S.H.B. No. 3135
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to state and local funding and agreements supporting the
1-3 bids of certain municipalities to host the 2007 Pan American Games;
1-4 providing a penalty.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. DEFINITIONS. In this Act:
1-7 (1) "Department" means the Texas Department of
1-8 Economic Development.
1-9 (2) "Endorsing municipality" means a municipality that
1-10 has a population of 850,000 or more according to the most recent
1-11 federal decennial census and that authorizes a bid by a local
1-12 organizing committee for selection of the municipality as the site
1-13 of the 2007 Pan American Games.
1-14 (3) "Games" means the 2007 Pan American Games.
1-15 (4) "Games support contract" means a joinder
1-16 undertaking, a joinder agreement, or a similar contract executed by
1-17 the department and containing terms permitted or required by this
1-18 Act.
1-19 (5) "Joinder agreement" means an agreement entered
1-20 into by:
1-21 (A) the department on behalf of this state and a
1-22 site selection organization setting out representations and
1-23 assurances by the state in connection with the selection of a site
1-24 in this state for the location of the games; or
2-1 (B) an endorsing municipality and a site
2-2 selection organization setting out representations and assurances
2-3 by the endorsing municipality in connection with the selection of a
2-4 site in this state for the location of the games.
2-5 (6) "Joinder undertaking" means an agreement entered
2-6 into by:
2-7 (A) the department on behalf of this state and a
2-8 site selection organization that the state will execute a joinder
2-9 agreement in the event that the site selection organization selects
2-10 a site in this state for the games; or
2-11 (B) an endorsing municipality and a site
2-12 selection organization that the municipality will execute a joinder
2-13 agreement in the event that the site selection organization selects
2-14 a site in this state for the games.
2-15 (7) "Local organizing committee" means a nonprofit
2-16 corporation or its successor in interest that:
2-17 (A) has been authorized by an endorsing
2-18 municipality to pursue an application and bid on the applicant's
2-19 behalf to the Pan American Sports Organization for selection as the
2-20 site of the games; or
2-21 (B) has executed an agreement with a site
2-22 selection organization regarding a bid to host the games.
2-23 (8) "Site selection organization" means the United
2-24 States Olympic Committee or the Pan American Sports Organization.
2-25 SECTION 2. PURPOSE. The purpose of this Act is to provide
2-26 assurances required by the site selection organization sponsoring
2-27 the games.
3-1 SECTION 3. LEGISLATIVE FINDINGS. The conduct in this state
3-2 of the 2007 Pan American Games will:
3-3 (1) provide invaluable public visibility throughout
3-4 the world for this state and the communities where the games are
3-5 held;
3-6 (2) encourage and provide major economic benefits to
3-7 the communities where the games are held and to the entire state;
3-8 and
3-9 (3) provide job creation opportunities for local and
3-10 Texas businesses.
3-11 SECTION 4. GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS; PAN
3-12 AMERICAN GAMES TRUST FUND. (a) If a site selection organization
3-13 selects a site for the games in this state pursuant to an
3-14 application by a local organizing committee, after the first
3-15 occurrence of a measurable economic impact in this state as a
3-16 result of the preparation for the games, as determined by the
3-17 comptroller, but in no event later than one year before the
3-18 scheduled opening event of the games, the comptroller shall
3-19 determine for each subsequent calendar quarter, in accordance with
3-20 procedures developed by the comptroller:
3-21 (1) the incremental increase in the receipts to the
3-22 state from the taxes imposed under Chapters 151, 152, 156, and 183,
3-23 Tax Code, and under Title 5, Alcoholic Beverage Code, within the
3-24 market areas designated under Subsection (b) of this section, that
3-25 is directly attributable, as determined by the comptroller, to the
3-26 preparation for and presentation of the games and related events;
3-27 and
4-1 (2) the incremental increase in the receipts collected
4-2 by the state on behalf of the endorsing municipality from the sales
4-3 and use tax imposed by the endorsing municipality under Section
4-4 321.101(a), Tax Code, that is directly attributable, as determined
4-5 by the comptroller, to the preparation for and presentation of the
4-6 games and related events.
4-7 (b) For the purposes of Subsection (a)(1) of this section,
4-8 the comptroller shall designate as a market area for the games each
4-9 area in which the comptroller determines there is a reasonable
4-10 likelihood of measurable economic impact directly attributable to
4-11 the preparation for and presentation of the games and related
4-12 events, including areas likely to provide venues, accommodations,
4-13 and services in connection with the games based on the proposal
4-14 provided by the local organizing committee under Section 6 of this
4-15 Act. The comptroller shall determine the geographic boundaries of
4-16 each market area. The endorsing municipality that has been selected
4-17 as the site for the games must be included in a market area for the
4-18 games.
4-19 (c) Subject to Section 5 of this Act, the comptroller shall
4-20 retain, for the purpose of guaranteeing the joint obligations of
4-21 the state and the endorsing municipality under a games support
4-22 contract and this Act, the amount of municipal sales and use tax
4-23 revenue determined under Subsection (a)(2) of this section from the
4-24 amounts otherwise required to be sent to the municipality under
4-25 Section 321.502, Tax Code, beginning with the first distribution of
4-26 that tax revenue that occurs after the date the comptroller makes
4-27 the determination of the amount of municipal sales and use tax
5-1 revenue under Subsection (a)(2). The comptroller shall discontinue
5-2 retaining municipal sales and use tax revenue under this subsection
5-3 on the earlier of:
5-4 (1) the end of the third calendar month following the
5-5 month in which the closing event of the games occurs; or
5-6 (2) the date that the amount of municipal sales and
5-7 use tax revenue in the Pan American Games trust fund equals 14
5-8 percent of the maximum amount that may be deposited in the trust
5-9 fund under Subsection (m) of this section.
5-10 (d) In addition to municipal sales and use tax revenue
5-11 retained under Subsection (c) of this section, an endorsing
5-12 municipality may guarantee its obligations under a games support
5-13 contract and this Act by pledging surcharges from user fees,
5-14 including parking or ticket fees, charged in connection with
5-15 presentation of the games.
5-16 (e) The comptroller shall deposit the amount of state tax
5-17 revenue determined under Subsection (a)(1) of this section and the
5-18 amount of municipal sales and use tax revenue retained under
5-19 Subsection (c) of this section into a trust fund designated as the
5-20 Pan American Games trust fund. The trust fund is established
5-21 outside the treasury but is held in trust by the comptroller for
5-22 the administration of this Act. Money in the trust fund may be
5-23 spent by the department without appropriation only as provided by
5-24 this Act. The comptroller shall discontinue deposit of the amount
5-25 of state tax revenue determined under Subsection (a)(1) of this
5-26 section on the earlier of:
5-27 (1) the end of the third calendar month following the
6-1 month in which the closing event of the games occurs; or
6-2 (2) the date the amount of state revenue in the Pan
6-3 American Games trust fund equals 86 percent of the maximum amount
6-4 that may be deposited in the trust fund under Subsection (m) of
6-5 this section.
6-6 (f) The endorsing municipality may deposit into the Pan
6-7 American Games trust fund any amount of available revenue from the
6-8 municipality's hotel occupancy tax imposed under Chapter 351, Tax
6-9 Code. Deposit of that revenue into the trust fund is considered an
6-10 authorized use of the revenue for purposes of Chapter 351, Tax
6-11 Code. The comptroller shall credit any amount of municipal hotel
6-12 occupancy tax revenue deposited by the endorsing municipality into
6-13 the trust fund toward the amounts otherwise required to be retained
6-14 under Subsection (c) of this section from the municipality's sales
6-15 and use tax revenue and shall reduce the amount of the
6-16 municipality's sales and use tax revenue retained under Subsection
6-17 (c) from the next distribution of that revenue to the municipality
6-18 under Section 321.502, Tax Code.
6-19 (g) The department may use the funds in the Pan American
6-20 Games trust fund only to fulfill joint obligations of the state and
6-21 the endorsing municipality to a site selection organization under a
6-22 games support contract or any other agreement providing assurances
6-23 from the department or the endorsing municipality to a site
6-24 selection organization.
6-25 (h) A local organizing committee shall provide information
6-26 required by the comptroller to enable the comptroller to fulfill
6-27 the comptroller's duties under this Act, including annual audited
7-1 statements of the local organizing committee's financial records
7-2 required by a site selection organization and data obtained by the
7-3 local organizing committee relating to attendance at the games and
7-4 to the economic impact of the games. A local organizing committee
7-5 must provide an annual audited financial statement required by the
7-6 comptroller not later than the end of the fourth month after the
7-7 date the period covered by the financial statement ends.
7-8 (i) The comptroller shall provide an estimate before August
7-9 31, 1999, of the total amount that would be deposited in the Pan
7-10 American Games trust fund before January 1, 2008, if the games were
7-11 to be held in this state at a site selected pursuant to an
7-12 application by a local organizing committee. The comptroller shall
7-13 provide the estimate on request to a local organizing committee. A
7-14 local organizing committee may submit the comptroller's estimate to
7-15 a site selection organization.
7-16 (j) The department may not make a disbursement from the Pan
7-17 American Games trust fund unless the comptroller certifies that the
7-18 disbursement is for a purpose for which the state and the endorsing
7-19 municipality are jointly obligated under a games support contract
7-20 or other agreement described by Subsection (g) of this section.
7-21 (k) If the comptroller certifies under Subsection (j) of
7-22 this section that a disbursement may be made from the Pan American
7-23 Games trust fund, the obligation shall be satisfied first out of
7-24 municipal revenue deposited in the trust fund. If the municipal
7-25 revenue is not sufficient to satisfy the entire deficit, state
7-26 revenue deposited into the trust fund shall be used to satisfy the
7-27 portion of the deficit not covered by the municipal revenue.
8-1 (l) On January 1, 2009, the comptroller shall transfer to
8-2 the general revenue fund any money remaining in the Pan American
8-3 Games trust fund, not to exceed the amount of state revenue
8-4 remaining in the trust fund, plus any interest earned on that state
8-5 revenue. The comptroller shall remit to the endorsing municipality
8-6 any money remaining in the trust fund after the required amount is
8-7 transferred to the general revenue fund.
8-8 (m) In no event may:
8-9 (1) the amount deposited in the Pan American Games
8-10 trust fund exceed $20 million; or
8-11 (2) the joint liability of the state and the endorsing
8-12 municipality under a joinder agreement and any other games support
8-13 contracts entered into pursuant to this Act exceed $20 million.
8-14 SECTION 5. MUNICIPAL ELECTION. (a) Except as provided by
8-15 Subsection (b) of this section, an endorsing municipality must hold
8-16 an election in the municipality to determine whether the
8-17 municipality may contribute a portion of its sales and use taxes to
8-18 the Pan American Games trust fund under Section 4 of this Act. The
8-19 election must be held on a uniform election date that occurs after
8-20 the effective date of this Act and before the date a site selection
8-21 organization requires the endorsing municipality and the state to
8-22 enter into a joinder undertaking.
8-23 (b) An endorsing municipality is not required to hold an
8-24 election under this section if there is not a sufficient number of
8-25 days between the effective date of this Act and a uniform election
8-26 date that occurs before the date a site selection organization
8-27 requires that the endorsing municipality and the state enter into a
9-1 joinder undertaking to allow the municipality to submit the
9-2 proposed election to the United States attorney general for
9-3 preclearance under Section 5 of the Voting Rights Act of 1965, as
9-4 amended (42 U.S.C. Section 1973c), at least 120 days before the
9-5 election.
9-6 (c) If an endorsing municipality is required to hold an
9-7 election under this section, the comptroller may not retain
9-8 municipal sales and use tax revenue under Section 4(c) of this Act
9-9 from amounts otherwise required to be sent to that municipality
9-10 under Section 321.502, Tax Code, unless the contribution of a
9-11 portion of the municipality's sales and use taxes is approved by a
9-12 majority of the voters voting in the election.
9-13 SECTION 6. ASSISTANCE OF DEPARTMENT AND OTHER STATE
9-14 AGENCIES. (a) The department shall review requests from a local
9-15 organizing committee that the department, on behalf of the state,
9-16 enter into a games support contract that is required by a site
9-17 selection organization in connection with the committee's bid to
9-18 host the games.
9-19 (b) A request made under Subsection (a) of this section must
9-20 be accompanied by:
9-21 (1) a general description and summary of the games for
9-22 which a site selection is sought by the local organizing committee;
9-23 (2) a preliminary and general description of the
9-24 proposal the local organizing committee intends to submit to a site
9-25 selection organization;
9-26 (3) the estimated cost of preparing and submitting the
9-27 intended proposal;
10-1 (4) the local organizing committee's intended method
10-2 of obtaining the funds needed for the purpose of preparing the
10-3 proposal;
10-4 (5) a description by type and approximate amount of
10-5 the site selection application costs that the local organizing
10-6 committee intends to spend; and
10-7 (6) any other information reasonably requested by the
10-8 department to assist it in reviewing the request.
10-9 (c) The department shall approve or deny a request made
10-10 under Subsection (a) of this section not later than the 30th day
10-11 after the date the request is submitted.
10-12 (d) The department may agree in a joinder undertaking
10-13 entered into with a site selection organization that the department
10-14 will:
10-15 (1) execute a joinder agreement if the site selection
10-16 organization selects a site in this state for the games; and
10-17 (2) refrain from taking any action after the execution
10-18 of the joinder undertaking that would impair its ability to execute
10-19 the joinder agreement.
10-20 (e) The department may agree in a joinder undertaking that
10-21 the state will:
10-22 (1) provide or cause to be provided all of the
10-23 governmental funding, facilities, and other resources specified in
10-24 the local organizing committee's bid to host the games;
10-25 (2) be bound by the terms of, cause the local
10-26 organizing committee to perform, and guarantee performance of the
10-27 local organizing committee's obligations under contracts relating
11-1 to selecting a site in this state for the games; and
11-2 (3) be jointly liable with the local organizing
11-3 committee for:
11-4 (A) obligations of the local organizing
11-5 committee to a site selection organization, including obligations
11-6 indemnifying the site selection organization against claims of and
11-7 liabilities to third parties arising out of or relating to the
11-8 games; and
11-9 (B) any financial deficit relating to the games.
11-10 (f) The department may agree to execute a joinder
11-11 undertaking, a joinder agreement, or other games support contract
11-12 only if:
11-13 (1) the department determines that:
11-14 (A) the state's assurances and obligations under
11-15 the undertaking, agreement, or contract are reasonable; and
11-16 (B) any financial commitments of the state will
11-17 be satisfied exclusively by recourse to the Pan American Games
11-18 trust fund; and
11-19 (2) the endorsing municipality has executed an
11-20 agreement with a site selection organization that contains
11-21 substantially similar terms.
11-22 (g) Before executing a games support contract, the
11-23 department must execute an agreement with the applicable local
11-24 organizing committee requiring that if a site selection
11-25 organization selects a site for the games in this state pursuant to
11-26 an application by the local organizing committee, the local
11-27 organizing committee will repay the state any funds expended by the
12-1 department under this Act from any surplus of the local organizing
12-2 committee's funds remaining after the presentation of the games and
12-3 after the payment of the expenses and obligations incurred by the
12-4 local organizing committee.
12-5 (h) A games support contract may contain any additional
12-6 provisions the department requires in order to carry out the
12-7 purposes of this Act.
12-8 (i) The department may require a local organizing committee
12-9 to list the state as an additional insured on any policy of
12-10 insurance purchased by the local organizing committee and required
12-11 by a site selection organization to be in effect in connection with
12-12 the games.
12-13 (j) The Texas Department of Transportation, the Texas
12-14 Department of Public Safety, and the Texas Department of Housing
12-15 and Community Affairs may:
12-16 (1) assist a local organizing committee in developing
12-17 applications and planning for the games; and
12-18 (2) enter into contracts, agreements, or assurances
12-19 related to the presentation of the games.
12-20 (k) Notwithstanding any other provision of this Act, the
12-21 department may not obligate the state to pay or otherwise provide
12-22 funds to cover the costs of the construction or purchase of a
12-23 building or other facility by a municipality.
12-24 SECTION 7. APPLICATION OF OPEN MEETINGS AND OPEN RECORDS
12-25 LAWS. (a) A local organizing committee and its governing body are
12-26 subject to Chapters 551 and 552, Government Code.
12-27 (b) A final bid that is submitted by a local organizing
13-1 committee to a site selection organization is excepted from
13-2 required public disclosure under Chapter 552, Government Code,
13-3 until the Pan American Sports Organization selects the site for the
13-4 games.
13-5 SECTION 8. TAX EXEMPTIONS FOR LOCAL ORGANIZING COMMITTEE.
13-6 (a) A local organizing committee is exempt from:
13-7 (1) the sales, excise, and use taxes imposed under
13-8 Chapter 151, Tax Code;
13-9 (2) taxes on the sale, rental, or use of a motor
13-10 vehicle imposed under Chapter 152, Tax Code;
13-11 (3) the hotel occupancy tax imposed under Chapter 156,
13-12 Tax Code; and
13-13 (4) the franchise tax imposed under Chapter 171, Tax
13-14 Code.
13-15 (b) The exemptions provided by Subsections (a)(1), (2), and
13-16 (3) of this section take effect on the first day of the first month
13-17 after the effective date of this Act. The exemption provided by
13-18 Subsection (a)(4) of this section applies only to a tax imposed
13-19 under Chapter 171, Tax Code, that becomes due on or after the
13-20 effective date of this Act.
13-21 SECTION 9. ETHICS. (a) A local organizing committee that
13-22 submits a request under Section 6(a) of this Act must:
13-23 (1) affirm as a part of that request that it is fully
13-24 in compliance with the ethical guidelines set forth in all
13-25 contracts entered into and rules adopted by a site selection
13-26 organization, including the site selection organization's
13-27 requirements regarding disclosure of any financial interest by a
14-1 director, officer, or senior-level employee of the local organizing
14-2 committee in any proposed transaction with the local organizing
14-3 committee;
14-4 (2) not later than the 15th day of the first month
14-5 following each calendar quarter, file with the secretary of the
14-6 endorsing municipality for which the local organizing committee
14-7 submits a request:
14-8 (A) a certification that the local organizing
14-9 committee continues to be in compliance with the ethical guidelines
14-10 described by Subdivision (1) of this subsection; and
14-11 (B) a report of contributions to and
14-12 expenditures by the local organizing committee in the manner
14-13 described by Subsection (b) of this section; and
14-14 (3) file with the secretary of the endorsing
14-15 municipality on April 15 of each year a copy of each financial
14-16 statement required to be submitted by a local organizing committee
14-17 or a member of a local organizing committee to the United States
14-18 Olympic Committee during the preceding calendar year.
14-19 (b) A report made under Subsection (a)(2)(B) of this section
14-20 must include:
14-21 (1) for each contribution made to a local organizing
14-22 committee:
14-23 (A) the contributor's full name and address;
14-24 (B) the date of the contribution;
14-25 (C) whether the contribution is cash, made by
14-26 check, or in-kind; and
14-27 (D) the amount or market value of the
15-1 contribution; and
15-2 (2) for each expenditure made by a local organizing
15-3 committee:
15-4 (A) the full name and address of the person who
15-5 receives payment of the expenditure;
15-6 (B) the date of the expenditure;
15-7 (C) the purpose of the expenditure; and
15-8 (D) the amount of the expenditure.
15-9 (c) The endorsing municipality for which a local organizing
15-10 committee submits a request under Section 6(a) of this Act must
15-11 have a comprehensive ethics code establishing standards of conduct,
15-12 disclosure requirements, and enforcement mechanisms relating to
15-13 city officials and employees before the department may consider the
15-14 request.
15-15 SECTION 10. BRIBERY. (a) A person commits an offense if
15-16 the person intentionally or knowingly offers, confers, or agrees to
15-17 confer on another person, or solicits, accepts, or agrees to accept
15-18 from another person, any benefit as consideration for the
15-19 recipient's decision, opinion, recommendation, vote, or other
15-20 exercise of discretion as a member or employee of a local
15-21 organizing committee or site selection organization.
15-22 (b) It is a defense to prosecution under Subsection (a) of
15-23 this section that the benefit conferred is a meal or entertainment
15-24 reported under Section 9(a)(2)(B) of this Act or under a disclosure
15-25 requirement described by Section 9(a)(1) or 9(c) of this Act.
15-26 (c) It is not a defense to prosecution under Subsection (a)
15-27 of this section that a person whom the actor sought to influence
16-1 was not qualified to act as the actor intended the person to act.
16-2 (d) It is not a defense to prosecution under Subsection (a)
16-3 of this section that the benefit is not offered or conferred or
16-4 that the benefit is not solicited or accepted until after:
16-5 (1) the decision, opinion, recommendation, vote, or
16-6 other exercise of discretion has occurred; or
16-7 (2) the person whom the actor sought to influence is
16-8 no longer a member of the local organizing committee or a site
16-9 selection organization.
16-10 (e) In this section, "benefit" has the meaning assigned by
16-11 Section 36.01, Penal Code.
16-12 (f) An offense under this section is a felony of the second
16-13 degree.
16-14 SECTION 11. EMERGENCY. The importance of this legislation
16-15 and the crowded condition of the calendars in both houses create an
16-16 emergency and an imperative public necessity that the
16-17 constitutional rule requiring bills to be read on three several
16-18 days in each house be suspended, and this rule is hereby suspended.